American-Uzbekistan Chamber of Commerce
BUSINESS NEWSLETTER
  
Week in Review:
 
January 16, 2015 - January 23, 2015
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Dear AUCC Members and Friends:

 

Happy Holidays and best wishes for a prosperous New Year! 

 

We would like to express our gratitude to all AUCC members who, through all these years, have proven to be Uzbekistan's true allies and have been nothing but dedicated, reliable, honest and most conscientious business partners inspired to expand the bilateral relationship, business climate and promote development to enhance the lives of the people of Uzbekistan and the US.  

 

Our companies recognize that despite the global economic slowdown, Uzbekistan has managed to secure successfully greater macroeconomic stability and growth.  We applaud the Government of Uzbekistan for their continuous process to improve the operating business environment that US companies benefit from and fiscal discipline that has enhanced economic growth.  We greatly appreciate our own US Government for their continuous dialogue with their Uzbek counterparts on how to use trade and investment engagement as a pillar of the bilateral relations.

 

We stand ready to use our business acumen to facilitate the Uzbek and US Governments' efforts to attract more American companies and helping those who are already here generate even more success stories for the world to hear. We hope for the US and Uzbek Governments' support in helping us multiply our achievements and generate more projects and contracts that will make our nations achieve greater prosperity, stability and higher rates of development. 

 

Happy Holidays!  May 2015 bring greater prosperity to the American and Uzbek people. 

 

Sincerely, 

 

Carolyn Lamm, AUCC Chairperson

Timothy McGraw, AUCC President

 

If your company is interested in joining AUCC, please contact our office at 202-509-3744 or [email protected]  We invite you to be part of our organization and participate in our activities and events.   

 

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Established in 1993, the American-Uzbekistan Chamber of Commerce (AUCC) is a private, non-profit trade association representing interests of U.S. businesses ranging in size from small private enterprises to large, multinational corporations conducting business in Uzbekistan.

Our Mission: To advocate the views of the business community to ensure that private sector positions are considered during the development of key policies that impact American businesses and the future of U.S.-Uzbekistan relations.

Our Objective: To serve the needs of its members by strengthening commercial relations between the United States and Uzbekistan.

Trend  

January 21, 2015

 

Pamela Spratlen, appointed US Ambassador to Uzbekistan, on Jan.21 handed over copies of credentials to Foreign Minister Abdulaziz Kamilov, said the Uzbek foreign ministry.

The US Senate approved Pamela Spratlen's appointment as the ambassador to Uzbekistan in December.2014. Spratlen has served as the head of the US diplomatic mission in Kyrgyzstan since 2011.

During the talks at the foreign ministry, the sides discussed the state of relations between Uzbekistan and the United States, the implementation of agreements reached within the fifth round of bilateral political consultations held in early December 2014 in Tashkent.

Particular attention was paid to the promising areas of cooperation development in the political, trade and economic, cultural and humanitarian and other fields. Both sides also exchanged views on some issues of international and regional policy.

Spratlen succeeded George Krol, who now heads the US diplomatic mission in Kazakhstan.

 

Trend

January 19, 2015 

 

The foremost task of Uzbekistan is the modernization and diversification of the economy, said the president of Uzbekistan Islam Karimov, speaking at a meeting of the Cabinet of Ministers of the country.

"Creation of ample opportunities for the development of private property and private enterprise through fundamental structural changes in the economy of the country in 2015, consistent continuation of the processes of modernization and diversification is our top priority," he said.

First, it is necessary to ensure advanced development of the sectors and industries, which are highly competitive on the global market and may become engines of economic growth, to further modernization and diversification of the economy, according to the president.

The president said that this requires the use of unused reserves for the introduction of modern technologies of deeper processing of raw materials and semi-finished products, construction of new facilities and production in oil and gas, petrochemical, chemical, light and electrical engineering industries, as well as the production of finished goods in demand.

In this regard, the Cabinet of Ministers of Uzbekistan needs to develop and adopt a program of measures on provision of structural reforms, modernization and diversification of production for 2015-2019 within 2 months, he said.

Another important task is to eliminate all barriers and constraints for the development of private property and private enterprise, Karimov said.

In particular, the president considers it necessary to radically revise and significantly simplify, and to make a more transparent mechanism of providing private entrepreneurs with raw materials, primarily due to the expansion of the volumes of their sale on the open stock auctions.

"Enhancing of the role of the judicial bodies in protecting the legitimate rights and interests of private owners, strengthening of the responsibility of state officials, representatives of the law enforcement and controlling bodies for illegal interference in the businesses' activity are of paramount importance," the president said.

Moreover, the president stressed the need for the critical assessment of the state's level of involvement in the economy, its reduction to strategic and economically reasonable interaction.

"First, it is necessary to sell the unprofitable and economically insolvent state enterprises at a zero cost to the private owners, especially, to the professional foreign investors," he said. "The investors must make commitments to restore and establish new modern production facilities on their basis."

"Radical change in the principles and approaches to the corporate governance system, the introduction of modern international corporate management standards by the producers, foreign economic and investment processes require much attention," President Karimov said.

"First of all, it is necessary to critically evaluate the effectiveness of the activity of our corporate or joint stock associations," he said.

Over 1,100 joint stock companies have been created and are operating in Uzbekistan. Their total authorized capital of more than 11.7 trillion UZS has in recent years risen 5.3 times.

However, the growing scale of incorporation demonstrated that there are many unsolved problems in the system of corporate governance and distribution of income from the joint stock companies' activities; in particular, of those where the state is the shareholder and the other shareholders are actually isolated from management and decision-making.

As a result, production is still actually managed by the directors, who are often not interested in the development of production and remain committed to an administrative-command management style that leads to passivity and lack of initiative taken by managers.

The president said it is necessary to better examine the experience of foreign companies to create and introduce the standard corporate governance structures in the country, and, on this basis, to rebuild the entire management system within domestic joint stock companies.

"The deepening of localized production and expansion of inter-sectoral industrial cooperation are among the important reserves and factors for economic growth and structural transformations in the economy, as the creation of import-substituting industries on the basis of our own raw materials will provide the country's economic independence," Karimov said.

The fastest growing level of localized production in Uzbekistan in the industrial production volume, which rose from 9.2 percent in 2005 to nearly 20 percent in 2014, is evidence of this he stated.

The president said the government should also pay attention to the creation of developed infrastructure, first of all, information and communication systems, road and transport, engineering and communications construction, as well as implementation of the integrated development program of the national information and communications system for the period of 2013-2020.

All t responsible institutions are instructed to take effective measures on the unconditional implementation of the parameters scheduled for 2015 on construction, reconstruction and repair of the highways' sections which are the part of Uzbekistan's national highways and railway communications, said Karimov.

"I'm confident that our goals and tasks for 2015 and the subsequent years on continuing and further intensifying reforms, the sustainable development of economy, progressive and the continuous increase in the level and quality of life of our people - all this are quite real and manageable tasks," said Karimov.

It was earlier reported that Uzbek government plans to ensure 8 percent GDP growth, 8.3 percent - industrial production, 6 percent - agriculture, 9.6 percent - volume of capital investments, as well as forecasted inflation at the level of 5.5-6.5 percent.

 

UzDaily

January 21, 2015 

 

China National Petroleum Corporation (CNPC) and Uzbekneftegaz rated the cost of the fourth line of the Uzbek part of Central Asia - China gas pipeline at US$800 million, RIA Novosti reported quoting representative of CNPC.

The source said that there are preliminary calculations of the project and its cost is rated at US$800 million. The construction of the fourth line will be started in the second half of 2015, the source added.

The source noted that length of new line will be about 200 km and it will be the shortest in the system of Central Asia - China gas pipeline. The fourth line will link existing gas pipeline infrastructure in Uzbekistan with constructed line in Tajikistan. New line of the Central Asia - China gas pipeline with the length of 1,00 km will pass through five states - Turkmenistan, Uzbekistan, Tajikistan, Kyrgyzstan and China and help to increase its capacity up to 85 billion cubic meters.

Asia Trans Gas, joint venture between Uzbekneftegaz and CNPC, completed construction of the third line of the Uzbek part of the pipeline for US$2.2 billion in December 2014. The capacity of the third line is 25 billion cubic meters and length - 529 km. The third line will increase capacity of the pipeline to 55 billion cubic meters.

The construction of Central Asia - China gas pipeline started in July 2018. The first line was commissioned in December 2009. Currently, its total length is about 7,000 km. It passes via territories of Turkmenistan, Uzbekistan and Kazakhstan.

 

UzDaily

January 23, 2015 

 

Management of the state joint stock company Uzavtoyol held a meeting with a mission of the World Bank to discuss a World Bank funded project on capital repair of automobile roads of general use of local importance in Uzbekistan.

Within the project, it is planned that the World Bank will issue loan to repair automobile roads of general use of local importance in Tashkent region at 20 areas with the length of 158 km, Uzavtoyol said.

In the second stage, it is planned to provide loan to capital repair of roads in Andijan, Namangan and Ferghana regions.

The meeting also considered issues related to institutional development of Uzavtoyol.

 


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The American-Uzbekistan
Chamber of Commerce
 
1300 I Street, N.W.,
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phone: 202.509.3744
 
[email protected]

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